Take Loan On PPF Account, No Guarantee Required

Take Loan On PPF Account, No Guarantee Required

Take Loan On PPF Account, No Guarantee Required:Many times you need money, but due to high interest rates and no guarantees from banks, you hesitate to take a loan. But let us tell you that you can also take a loan through your PPF (public provident fund), along with cheaper interest rate. The PPF account is maturing in 15 years, but you can get a loan from the third to the sixth financial year after its opening.

Advantages Of Loan On PPF Account:

No guarantees and mortgages are required.

Usually, banks lend money at an interest rate of 11.6%, but PPF accounts have to pay 2% interest rates.

To repay the loan, you get 3 years i.e. 36 months.

The interest rate fixed at the time of taking a loan, the same rate remains constant for the entire duration of repayment.

Know These Conditions:

After opening the PPF account, you can take a loan between the third and the sixth financial year. This means that if you opened the PPF account on June 15, 2016, you can get a loan between 2018-19 to 2021-22 financial year.

Withdrawal from PPF account starts with the seventh financial year, with the withdrawal of loan facility.

The loan limit can't exceed 25% of the amount on the expiry of the last financial year.

The loan can be taken at the end of the loan only.

If you do not pay the loan on a fixed time limit, interest rate on PPF account will be 6 % more interest rate.

The PPF account should be continued until the loan is completed.

Take Loan On PPF Account, No Guarantee Required
Reviewed by Hunt duniya
on
September 25, 2018
Rating: 5